Pakistan awaits IMF’s decision to alleviate electricity consumer burden — official

Traders shout slogans during a protest at a street in Karachi on August 23, 2023, against the surge in petrol and electricity prices as Pakistan endures soaring inflation. (AFP/File)
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Updated 08 September 2023
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Pakistan awaits IMF’s decision to alleviate electricity consumer burden — official

  • Pakistani power consumers received inflated bills in August which led to sporadic but widespread protests
  • Independent expert says the interim PM should speak to the top IMF official to extract a favorable response

KARACHI: Pakistan awaits International Monetary Fund’s (IMF) nod before announcing any relief for electricity consumers paying excessively high bills amid mounting public discontent, confirmed a senior official privy to the ongoing negotiations between the two sides on Friday.
The government approached the international lender in recent weeks to secure concessions for electricity consumers who received inflated bills for the month of July which sparked popular protests across Pakistan where many people torched copies of the official payment notices.
Subsequently, the country sought relief from the IMF, which approved a $3 billion bailout program in July after Pakistan agreed to implement stringent economic reforms, to help people consuming up to 400 units of electricity.
However, it has still not received the required permission.
“Pakistan has shared various options with the IMF on how to provide relief to power consumers, but its response is still awaited,” a finance division official told Arab News on condition of anonymity due to the sensitive nature of the issue.
He added that the fund was more interested in reviewing the country’s overall financial progress under the bailout agreement which is expected to take place somewhere in the last two months of the year.
Power tariff surged by about 27 percent along with a proportionate increase in various taxes after Pakistan’s National Electric Power Regulatory Authority (NEPRA) announced Rs4.96 increase per unit in June.
Since the coalition administration of former prime minister Shehbaz Sharif failed to implement the rates immediately, electricity consumers started receiving inflated bills in August.
This delay in the implementation resulted in up to 60 percent higher bills that led to countrywide protests and prompted Caretaker Prime Minister Anwaar-ul-Haq Kakar to initiate talks with the IMF to secure relief for the consumers.
Pakistani officials proposed to address the concerns of some 80 percent consumers who utilized 400 units, though they said they were even willing to reduce the threshold to 200 units during their conversations with the IMF.
“Relief means that a certain portion of the payable amount will be received in later months,” the financial division official said. “It does not mean that it will be completely waived off.”
He noted that any mechanism to facilitate the consumers will ultimately depend on the IMF approval.
Pakistan’s caretaker information minister Murtaza Solangi also maintained the same thing on Thursday, saying the government could not announce a relief plan without getting a nod from the international lender.
Solangi could not be approached despite repeated attempts to comment on the latest progress in the country’s conversation with the IMF.
An independent Pakistani financial expert privy to these developments said the government’s proposals had not moved the IMF until yesterday.
“As per our background check, the fund had turned down the proposals sent to them by the authorities,” Dr. Vaqar Ahmed, Joint Executive Director at Sustainable Development Policy Institute (SDPI), told Arab News. “They were insisting on discussing the upcoming review of the bailout program.”
“To get the relief from the fund,” he continued, “the prime minister will have to personally speak with the IMF managing director like the former premier Shahbaz Sharif did.”
Sharif had met the top IMF official, Kristalina Georgieva, three time which helped his administration secure the current $3 billion loan facility for nine months.
“The new prime minister will have to pull up his socks and meet the IMF managing director himself,” Ahmed added. “This is not something you can leave to your economic team.”
He also maintained the caretaker government should knock the door of its allies and friendly countries, including the United States and Saudi Arabia, to seek their help in persuading the IMF.
The SDPI official said the Kakar administration would need to convince the fund on technical grounds and share the progress made to fulfil the requirements of upcoming review.
 


Pakistan’s disaster management authority warns of flash floods amid heavy monsoon rains

Updated 05 July 2024
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Pakistan’s disaster management authority warns of flash floods amid heavy monsoon rains

  • According to an official advisory, the current spell of rains is likely to continue over the weekend
  • Urban flooding is expected in several cities, with authorities being asked to take appropriate measures

ISLAMABAD: The National Disaster Management Authority’s Emergencies Operation Center warned of flash floods in a number of Pakistani cities, including the federal capital and its adjoining areas, amid the ongoing monsoon rains that are likely to continue over the weekend.
The newly established operation center is tasked with overseeing comprehensive disaster management efforts across Pakistan, including coordinating response activities and disseminating critical information.
Monitoring and forecasting weather patterns constitute a significant component of its mandate, enabling timely warnings to ensure proactive response.
Two years ago, Pakistan suffered a great deal due to the unprecedented monsoon rains and devastating floods, which resulted in the deaths of 1,700 people and caused over $35 billion in damages to homes, agricultural lands and public infrastructure.
“NDMA’s National Emergencies Operation Center anticipated that ongoing torrential rains may cause flash floods in local [water channels]/streams of Islamabad, Rawalpindi, Sialkot, Narowal, Murree, Galliyat, Kohistan, Abbottabad, Dir, Swat, Kashmir and hill torrent of D.G Khan and Rajanpur due to present monsoon spell till 7th July,” the center said in an advisory.
“Urban Flooding is expected [in] Lahore, Sialkot, Narowal, Gujranwala, Faisalabad, Rawalpindi and Peshawar,” it added.
The advisory said that Provincial Disaster Management Authorities had been asked to monitor the situation and take appropriate measures to protect the population at risk.
“The public is advised to stay informed and follow instructions from local authorities,” it said.


Hundreds storm Pakistan power station over long outages

Updated 05 July 2024
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Hundreds storm Pakistan power station over long outages

  • The incident took place in Sibi in southern Balochistan where temperatures peaked at 45 degrees Celsius
  • Power outages are prolonged in Balochistan due to electricity production deficits, unpaid bills by consumers

Hundreds of people in one of Pakistan’s hottest cities stormed a power station in protest against cuts lasting up to 20 hours a day, police said Friday.

The protesters also ransacked the station’s neighboring administrative office in Thursday night’s incident in rural Sibi, in southern Balochistan province, where temperatures peaked at 45 degrees Celsius (113 degrees Fahrenheit).

“People stormed the electricity supply office and ransacked it last night and a case has been lodged against them,” police official Anayatullah Bungulzai told AFP, adding that the group numbered up to 800 people.

Planned power cuts, also known as loadshedding, happen frequently in Pakistan due to fuel shortages, varying in length in different areas.

In Balochistan, Pakistan’s largest province, power outages are prolonged due to both electricity production deficits and unpaid bills by consumers that affect entire neighborhoods.

Afzal Baloch, spokesperson for the Quetta Electricity Supply Company, told AFP the company suffers “significant” monthly losses due to outstanding payments.

However, protester Noor Ahmad said on Friday they were “compelled” to act over “the excessive loadshedding lasting for hours despite our timely payments of bills.”

Sibi is one of the hottest settled areas in Pakistan, where temperatures regularly reach 50C (122F) degrees during heatwaves.

Scientists say such conditions are becoming longer, more frequent and more intense as a result of climate change.

Balochistan is also one of Pakistan’s poorest provinces, and battles poor security, rugged terrain, an unreliable water supply and restricted employment opportunities.


Pakistan’s information minister hails PM Sharif’s ‘historic’ stance on Palestine at SCO summit

Updated 05 July 2024
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Pakistan’s information minister hails PM Sharif’s ‘historic’ stance on Palestine at SCO summit

  • Shehbaz Sharif said at the gathering Israel was committing ‘genocide’ and must be held accountable
  • Minister Attaullah Tarar maintains no one has ever spoken so clearly about the Palestinian cause before

ISLAMABAD: Federal Minister for Information and Broadcasting Attaullah Tarar applauded Prime Minister Shehbaz Sharif on Friday for adopting a clear stance over Palestine at the Shanghai Cooperation Organization (SCO) in Kazakhstan while describing it as “historic.”
Sharif participated in the SCO and SCO-Plus summits in Astana where he addressed a range of global and regional issues, including Israel’s ongoing war in Gaza that has entered its tenth month.
He criticized Israeli Prime Minister Benjamin Netanyahu’s administration for the bloodshed of thousands of women and children and demanded an immediate ceasefire.
“I would especially like to mention the unambiguous words and clear and blunt stance adopted by the Pakistani prime minister regarding Palestine at the Shanghai Cooperation Organization summit, which were historic,” Tarar said. “No one has ever spoken so clearly about the Palestinian cause before.”
He said that Sharif had not only maintained that Israel was “committing genocide” against the unarmed and oppressed Palestinians but also highlighted that it was “engaging in war crimes.”
“The prime minister said very clearly that Israel must be made answerable: Israel must be held accountable,” he added.
Tarar said Sharif had echoed the sentiments of every Pakistan, regardless of their political affiliation and faith, by presenting his country’s stance over the Palestine issue.
Israel launched its air and ground offensive targeting Gaza last October following a surprise attack by Hamas in which around 1,200 people were killed and more than 250 were taken hostages.
The Palestinian group said its attack was in response to the deteriorating condition of Palestinian people living under occupation.
Israel’s response was widely viewed as disproportionate by the international community in which nearly 38,000 people, mostly women and children, have died.
Israel was taken to the International Court of Justice (ICJ) by South Africa on the allegaton of committing genocide where other nations joined the proceedings as well.


Army raises alarm over ‘unwarranted’ criticism of anti-militancy operation amid opposition’s concerns

Updated 05 July 2024
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Army raises alarm over ‘unwarranted’ criticism of anti-militancy operation amid opposition’s concerns

  • The army says Operation Azm-e-Istehkam aims to dismantle the nexus of ‘terrorism’ and other crimes
  • It says the military will assist the government in addressing challenges that undermine investor confidence

ISLAMABAD: Pakistan’s top military brass on Friday raised concerns over “unwarranted” criticism of a newly announced operation against militant violence in the country, saying it would assist the government in addressing all security-related challenges undermining investor confidence.
The military’s media wing, Inter-Services Public Relations (ISPR), announced this in a statement circulated after the 265th Corps Commanders’ Conference held at the General Headquarters in Rawalpindi, presided over by Army Chief General Asim Munir.
The participants reviewed the overall security landscape and focused on Operation Azm-e-Istehkam — or Resolve for Stability — which was announced last month during the meeting of the country’s top security body.
The opposition parties, including former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI), raised objections to the planned operation, pointing out that it should have first been debated in the national parliament. They also expressed fears it could create further instability in the country.
“The forum undertook a comprehensive review of internal and external security situation of the country and had detailed discussion on various aspects of ‘Azm-e-Istehkam’, which is aimed at harnessing the national counter terrorism efforts in a synchronized manner to dismantle the nexus of terrorism and illegal spectrum in the country for enduring stability and economic prosperity,” the ISPR said.
“Forum noted with concern the unwarranted criticism by some quarters and deliberate misrepresentation of the vision, only for furthering their vested interests,” it added.
The statement said Pakistan’s military leadership was cognizant of the full spectrum of challenges faced by the country, as it pointed out that it would “shoulder its constitutionally mandated responsibilities with support of the resilient people of Pakistan.”
The conference also raised alarm over the “onslaught of politically motivated digital terrorism” against state institution, saying it was to create despondency among the nation and sow the seeds of discord through “fake news and propaganda.”
“Armed Forces along with the nation are fully aware of all such machinations and stand united and committed in defeating the notorious designs of the enemies of Pakistan,” the ISPR statement maintained.
“Forum reiterated to continue full support of ongoing efforts in uplifting the socioeconomic growth and wholeheartedly assisting the government in curbing all illegal activities which hamper investors’ confidence, economic stability and growth.”
The government’s decision to launch the new operation against militants came against the backdrop of a surge in violence in different parts of the country.
It also came shortly after a top Chinese leader visited Pakistan and expressed concern over militant attacks, noting they causing consternation among investors in his country.
The government plans to hold an all-parties conference in the coming days to take all political stakeholder on board with its anti-militancy plan, though its exact date is yet to be announced.


Government plans all-parties talks on new military operation, with Imran Khan’s PTI to join

Updated 05 July 2024
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Government plans all-parties talks on new military operation, with Imran Khan’s PTI to join

  • The information minister says the government is already consulting its coalition partners over the issue
  • The government announced the new operation against militants in June without any debate in parliament

ISLAMABAD: The government said on Friday it was consulting coalition partners about convening an all-parties conference (APC) to discuss a recently announced military operation, Azm-e-Istehkam or Resolve for Stability, as former prime minister Imran Khan said his party would participate to find out more about it.
Last month, Pakistan’s top national security body notified its decision to launch the operation amid a spike in militant violence across the country.
Leading opposition factions, including Khan’s Pakistan Tehreek-e-Insaf (PTI) party, objected to the announcement without any debate over the issue in national parliament. They also maintained such an operation would “only lead to further instability in the country.”
Following the backlash, Prime Minister Shehbaz Sharif’s office issued a statement, clarifying that “no large-scale military operation” would be launched in the country. With few details available in public on the contours of Operation Azm-e-Istehkam, the government has now planned to convene the APC to address the concerns of political stakeholders in the country.
“Our consultation process [on the APC] is ongoing,” Information Minister Attaullah Tarar said in a news conference in the federal capital. “The consultation is going on with regards to Operation Azm-e-Istehkam.”
The minister confirmed the government had completed one round of negotiations with its allies, adding further talks would be held before announcing the meeting’s specific date and agenda.
Earlier today, ex-PM Khan said his party would participate in the APC where the government was planning to take major political parties into confidence over the military operation.
“My party will participate in the all-parties conference and hear what the government has to say,” he told reporters as he appeared to face a case against him at Rawalpindi’s Adiala jail, where he has been incarcerated on multiple charges.
Referring to Khan’s statement, Tarar hoped he would stand his decision.
“Azm-e-Istehkam is a national issue and all political parties should be taken on board,” the minister emphasized while responding to a question if the PTI would be invited to the APC.
Speaking to Arab News, Zaigham Khan, a security analyst, said the government was trying to fix the “communication debacle” which it had made by announcing a full-scale military operation and then issuing a clarification it would not be kinetic.
“The opposition got a leverage point through this debacle and announced a disapproval of the military operation,” he continued, saying that Pakistan was a victim of a proxy war being waged and supported by the Afghan Taliban who were arming and protecting militants associated with a banned network, Tehreek-e-Taliban Pakistan.
“There was no need to rebrand the military operation as the troops are already engaged in eliminating terrorism by carrying out different intelligence-based operations,” he added. “The ongoing military operation against terrorists should have been intensified instead of being rebranded without any prior and effective consultation with all political parties.”
He expressed his doubt about the government’s ability to pacify the opposition parties by addressing their concerns about the operation.
“The political environment is so divisive at the moment that the government may find it hard to get a clear approval for the military operation from all political parties,” he maintained.